Job gains topped expectations as U.S. payrolls increased by 163,000 in July, while the overall unemployment rate increased to 8.3 percent.
Private sector employers reported 172,000 net new jobs in July, bolstering what was the best month for job gains since February.
The median projection of economists surveyed by Bloomberg News prior to the report”™s release called for 89,000 new jobs.
The unemployment rate, which is derived from a separate survey of households, increased fractionally, enough to bump the rate from 8.2 last month to 8.3 percent.
IHS Global Insight Chief U.S. Economist Nigel Gault said the report should “alleviate fears that the U.S. might be tipping back into recession.”
Gault noted that the biggest gains were in private education, leisure and hospitality, and manufacturing.
As of 11 a.m., each of the major stock indices was up by more than 1.7 percent.
